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Freddie Mac Offers Mortgage Relief for Military Service Members

November 8, 2013

Relief for Military Service Members

When service members complete their military assignments, the transition back to civilian life can be difficult. In some cases they are unable to purchase new homes, or continue with the mortgage payments on their current homes.

Freddie Mac recognizes the commitment and sacrifices our service members and their families make every day, and we continue to demonstrate our support by actively seeking ways to provide mortgage relief to members of the U.S. military and their families.

How Servicers Can Help

Helping military families during and after their service to our country is a priority we all share. The Servicemembers Civil Relief Act (SCRA) and state military relief laws provide service members with various forms of relief from debt, including mortgage obligations during a period of military service. That’s why we require Servicers to comply with the SCRA to support military homeowners.

In situations where a service member experiences hardship but does not qualify for protection under the SCRA, Servicers should review Single-Family Seller/Servicer Guide (Guide) Chapters 64 and 82 for the full menu of relief or workout options, including:

  • Extending the SCRA foreclosure protection to all service members during their period of military service and for one year after their military service ends, regardless of when their mortgage obligation originated
  • Allowing foreclosure forbearance when the mortgaged premises is the Primary Residence of a service member or a dependent, even if the borrower is not a service member

If a borrower requires additional relief, please contact your Freddie Mac representative.

Borrower Spotlight – How a Captain Kept His Family’s Home While Serving His Country

Last year, Captain Jonathan Williams* received Permanent Change of Station (PCS) orders that required him to be overseas for 12 months. With 10+ years in the U.S. Marine Corps, Captain Williams, along with his wife and three young children, understood relocation was a possibility, even if it was temporary. While overseas, he still wanted to maintain stability for his family by making sure they returned back to their home in the U.S. at the end of the 12 months.

He continued making mortgage payments through his savings funds while overseas. Unfortunately, the savings fund ran out and Captain Williams knew he had to find assistance elsewhere to keep his home while serving his country abroad.

Captain Williams started with his Servicer. He requested an assessment but was disappointed when they responded saying he was ineligible for assistance since the home was not currently owner occupied. As a last resort, Captain Williams contacted the Freddie Mac Homeowner Assistance and Response Team (HART) to find out how we could help him keep his home.

How Freddie Mac Helped

After a detailed consultation with Captain Williams that showed he was in financial good standing, a HART agent determined that a Freddie Mac Standard Modification Trial Period Plan could help Captain Williams keep his home. Captain Williams is now beyond thrilled. He returns to the U.S. with his family in three months and is so relieved he does not have to worry about finding another home. Freddie Mac was able to give Captain Williams peace of mind and financial stability. 

As Captain Williams’ story illustrates, together we can work toward solutions that help service members and their dependents stay in their homes.

*The service member’s name has been changed to protect his privacy.

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